Elice Drops 30% in $150 Million IPO as AI Overcapacity Hits Neocloud and Chip Stocks
Updated
Updated · CNBC · Oct 20
Elice Drops 30% in $150 Million IPO as AI Overcapacity Hits Neocloud and Chip Stocks
3 articles · Updated · CNBC · Oct 20
Summary
Elice’s weak market debut spilled into U.S. trading Tuesday, with CoreWeave and Nebius each down about 4% and Iren off roughly 6% after the South Korean cloud company fell 30% overnight.
HSBC said pressure on neoclouds is intensifying as debt-market strains and moderating large-language-model revenue deepen concerns about an AI infrastructure glut; it kept a reduce rating on CoreWeave with a $39 target, implying 36.5% downside.
Recent revenue disappointments from AI model companies have sharpened that skepticism: Anthropic’s growth slowed to 45% in the third quarter from 140% in the second, while OpenAI missed analyst expectations by $20 billion, according to Wolfe Research.
Gartner said 80% of neoclouds could lose independent operations by 2030 because planned AI compute spending is outrunning demand, a warning that also weighed on chip names including Micron, AMD and Nvidia.